Ito Invested $4,350

question 22

Multiple Choice

Ito invested $4,350. After seven years he had an account value of $6,980.58. Maria invested $5,920. After six years she had an account value of $8,834.62. Which one of the following statements is correct?

• A) Maria earned a rate of interest that was 0.9% higher than Ito's rate.
• B) Maria earned a rate of interest of 5.89%.
• C) Ito earned a rate of interest that was 0.09% higher than Maria's rate.
• D) Ito earned a rate of interest of 6.90%.
• E) Both Ito and Maria earned the same rate of interest.

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Definitions:

Assisted Living

A residential option for seniors who need help with some daily activities like meals, transportation, and personal care.

Rate Of Return

Earning or losing money on an investment throughout a specific timespan, represented as a portion of the investment's original cost.

Insurance Company

An organization that provides risk management by offering policyholders compensation in the event of specific losses, damage, illness, or death, in return for premium payments.

Offer

A proposal to sell or buy a specific asset or service at a specified price and terms.